Simple Gross Margin Calculator

Soil Quality

Type: Calculators
Knowledge level: Intermediate

Farm Table says:

Great little cropping calculator online. In addition to a simple GM, you will also need to enter crop insurance (if applicable), interest on working capital, opportunity cost and depreciation costs on machinery owned (if applicable).

This online calculator will help you determine profit/loss on a cropping enterprise ($/ha).

As per the website, the steps are as follows:

  1. enter your base yield. A good starting point is your long term average for the area in question
  2. enter a grain price – use the long term net on farm values, say a five year average. Do not use current prices as these are likely to be misleading
  3. enter the individual inputs for the crop. This should include all costs you include in your gross margin calculations (i.e. all direct costs)
  4. this will leave you with a gross margin for the crop in question
  5. enter your cost of funds. (if you are borrowing money then this should be at the cost of your overdraft. If you have credit funds in the bank this should be at the rate of interest you are being paid, or the rate of return you will get from investing the funds elsewhere)
  6. enter in your machinery costs and your depreciation costs for the machinery you use in the enterprise
Australia - Soil Quality
View ResourceSave For Later

Related Resources